Assume the Economy Is Experiencing a Recessionary Gap

question 84

Multiple Choice

Assume the economy is experiencing a recessionary gap. Keynesian economists would support which of the following policies:

• A) Nonstabilization
• B) Expansionary
• C) Nonintervention
• D) Fixed wage

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Definitions:

Unit Cost

Unit cost is the total expense incurred to produce, store, and sell one unit of a product or service, including both fixed and variable costs.

Operating Profit

Income from business operations after operating expenses are subtracted from gross profits, but before taxes and interest expenses.

Operating Expense

ongoing costs for running a product, business, or system.

Operating Profit

The earnings of a business from its core operations, excluding the effects of interest and taxes.